Why Entrepreneurs Should Stop Using Spreadsheets for Bookkeeping

| Bookkeeping, Business Basics, Small Business

Why Entrepreneurs Should Stop Using Spreadsheets for Bookkeeping

If you’re still using a spreadsheet for your business’ bookkeeping, we need to have a heart to heart.

I’m guessing that if you’re still using them, it’s either because:

A) You don’t know other options.

B) You can’t choose between the other options.

But here’s the problem. When you use a spreadsheet, bookkeeping has a tendency to take over the important stuff that keeps your business running, like bringing in new sources of revenue or marketing.

Here’s what I believe: bookkeeping should NOT take over your business tasks.

I know this isn’t news to you. Your spreadsheet has been clunky, constantly out of date, and often difficult for you to understand.

And when you don’t understand what you’re seeing, making smart financial decisions becomes a whole lot more difficult and making realistic goals feels impossible.

So what should you do instead?

That’s why the next best move for your business is to choose and sign up for a cloud-based accounting software.

I know that sounds kind of intimidating. But really, depending on which one you choose, the transition can be smooth, and you’re going to LOVE all the time you save.

Let me make the difference between a spreadsheet and online accounting software clearer by talking about something we all love: food.

When you cut a carrot, you can use a knife and cut one slice at a time. It will take a bit of time (especially if you AREN’T Gordon Ramsey).

Or your other option is to invest in a food processor, which will cut your carrot into little pieces in seconds.

The food processor is like your accounting tools, it gets the job done faster and more efficiently. Plus, you were probably able to chop more carrots in the same amount of time.

Remember, no software is perfect

As a bookkeeper, I see accounting software in a different light, and I read a lot of comments that look something like this, “I hate XYZ software. It’s so confusing and so hard to use. I want to find a new one. Any suggestions?”

I want to make sure you know that no software is perfect and that many of the suggestions I give are going to be made for accountants and bookkeepers, so they take the time to learn. What’s most important is that you choose one that fits the size of your business and the type of work you do.

Also, any cloud-based software you choose is going to be a step up from the standard spreadsheet-style bookkeeping.

I know that making the decision to move from spreadsheet to online can feel like a lot of work, so I’m going to go over my favorite accounting tools that help me and my clients with bookkeeping tasks.

These are:

  • Xero
  • Zoho Books
  • WaveApps
  • Freshbooks
  • Kashoo

These tools will help you streamline your business when it comes to sending invoices, accepting payments, tracking income and expenses, and managing your cashflow among so many other benefits.

We’ll talk about who each software is most suited for, the cost, benefits, and disadvantages.

Each requires a different process for making the move from a spreadsheet (or paper and pen) to online bookkeeping, and I love them because they all have a fantastic library of resources and responsive customer service. So, no matter which you choose, they’ll take care of you. 🙂

If you have questions you definitely want me to address or a specific software that you’ve been thinking about, leave me a comment below so I can make sure to cover it.

 

 

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